Cities are much more than a backdrop for the economy: they are the engine of its value creation. Every urban planning decision—from a new underground line to a new innovation zone—has a direct impact on the property market. And, in turn, the way in which people invest in real estate ends up shaping the structure, accessibility and urban identity.
According to the United Nations (World Urbanisation Prospects 2024), more than 55% of the world's population now lives in urban areas, a figure that will reach nearly 70% by 2050. The World Bank estimates that every time a city doubles its density, its productivity increases by between 2% and 5%, thanks to agglomeration effects: the concentration of talent, infrastructure and knowledge. This productivity is also reflected in land values and the profitability of urban assets.
During my PhD at Tsinghua University (Beijing), I had the opportunity to study the case of Shenzhen, perhaps the greatest contemporary example of how urban planning can anticipate the market. In just forty years, a small fishing port was transformed into one of the most dynamic technological ecosystems on the planet, generating a GDP higher than that of Hong Kong (according to the National Bureau of Statistics of China, 2023). Something similar is happening with Xiong'an, conceived as an urban laboratory for post-industrial China: a project planned to create value through sustainability, innovation and connectivity.
Europe, on the other hand, faces a different challenge. It does not need new cities, but new interpretations of those that already exist. In the south of the continent — especially in Spain and Portugal — the focus is on reconverting, densifying and balancing access to housing with attracting investment and talent. In both countries, more than 75% of the population lives in urban areas (Eurostat, 2024), which forces us to rethink how we combine urban regeneration, affordable housing and economic competitiveness.
The challenge for our Mediterranean cities is to achieve more agile urban governance, capable of keeping pace with market cycles without losing social or environmental coherence. Housing, mobility and energy are now issues of competitiveness as much as of citizen well-being.
Ultimately, property value is a tangible expression of urban value. Cities that manage to integrate planning, investment and purpose — such as Tokyo after the war or Lisbon in its regeneration of the waterfront — will be the ones that maintain their long-term appeal.
Because land is not only valuable for what it occupies, but also for what it connects.
And understanding that connection — between space, economy and everyday life — is the true art of contemporary real estate.